Check Before You Invest : Modison Ltd

Snapshot

Q.1 Which industry/sub-sector does Modison Ltd belong to?

Modison Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Modison Ltd a good quality company?

Modison Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Modison Ltd undervalued or overvalued?

Modison Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Modison Ltd a good buy now?

Modison Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Modison Ltd?

Modison Ltd revenue growth is 21.2% for FY-2025, which is above its 5-year CAGR of 17.46%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Modison Ltd?

Modison Ltd Return on capital employed is 15.09% for FY-2025, which is in line with its 5-year historical median of 15.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Modison Ltd?

Modison Ltd Return on Asset is 8.36%, which is in line with its 5-year historical median of 8.36%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Modison Ltd?

Modison Ltd Return on equity is 11.77% for FY-2025, which is above its 5-year historical median of 10.95%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Modison Ltd?

Modison Ltd Cash conversion cycle is 132 days, in line with its 5-year historical median of 130 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.66	1.63
ROE	11.77	10.95
ROCE	15.09	15.02
Cash Conversion Cycle	132 days	130 days

Q.6 Gross Profit margin of Modison Ltd?

Modison Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.7% for FY-2025, which is in line with its 5-year median of 8.7%, indicating stable margins.

Q.7 Operating Profit Margin of Modison Ltd?

Modison Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.95% for FY-2025, which is in line with its 5-year median of 8.95% indicating stable margins.

Q.8 Net Profit Margin of Modison Ltd?

Modison Ltd Net Profit Margin is 5.03% for FY-2025, is in line with with its 5-year median of 5.03%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.7	8.7
Operating Profit Margin	8.95	8.95
Net Profit Margin	5.03	5.03

Q.9 Debt to Equity ratio of Modison Ltd?

Modison Ltd Debt-to-Equity ratio is 0.34, which is lower with the industry average of 0.51, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Modison Ltd?

Modison Ltd Debt to cash flow from operations is -4.52, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Modison Ltd?

Promoters hold 52.16% of the Modison Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Modison Ltd vs industry peers?

Modison Ltd revenue CAGR is 17.46%, compared to the industry median CAGR of 16.95%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	21.2	17
Gross Profit Growth	43.3	27.6
Operating Profit Growth	37.5	NAN
Net Profit Growth	19.1	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.66	1.06
ROE	11.77	10.12
ROCE	15.09	13.84
Cash Conversion Cycle (days)	131.98	104

Valuation & price assessment

Q.1 Stock return of Modison Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	12.1%	22.4%	40.3%	35.6%

Q.3 Valuation ratios of Modison Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	11.61	18.32	37.99
Price to Book	2.17	1.71	3.99
Price to Sales	0.97	0.83	2.75
EV to EBITDA	9.18	9.62	18.70

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